Fed’s decision to keep rates unchanged is fading away from
markets and we witnessed recovery in US treasury yields and Wall street is
indicating elevated mood. Following this and the mixed US data, the USD/JPY
pair is pushing higher today. The pair was flirting with the 50% Fibonacci retarcement
of the the latest June to July bullish run around 111.60, which is acting as a
resistance.
On the four-hour time frame the price has crossed to above its 20-day SMA that
is slightly uptrending, but remains below its 100-day and 200-day SMAs. RSI and
stochastic had retreated from extreme oversold conditions. But stochastic is
displaying strong bullish momentum while RSI is loosing directional strength.
Strong support is seen at 61.8% Fibo at 111.00 and in case for breaking it to
below, the pair will accelerate its decline towards 110.50 (Monday’s low).
Looking to the upside, resistance levels are located at 111.60 (today’s high)
and 112.40(lats week’s high).
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